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Exin ASM Exam - Topic 3 Question 95 Discussion

While performing a cost-benefit analysis, the Product Owner of a project determined that the project has 45% probability of incurring a loss of $800,000 due to the latest Land Reform Bill. Which of the following techniques is being used by the Product Owner to perform cost-benefit analysis?
D) Risk Breakdown Structure.
A) Expected Monetary Value.
B) Probability Impact Grid.
C) Pareto Analysis.

Exin ASM Exam - Topic 3 Question 95 Discussion

Actual exam question for Exin's ASM exam
Question #: 95
Topic #: 3
[All ASM Questions]

While performing a cost-benefit analysis, the Product Owner of a project determined that the project has 45% probability of incurring a loss of $800,000 due to the latest Land Reform Bill. Which of the following techniques is being used by the Product Owner to perform cost-benefit analysis?

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Suggested Answer: D

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Vivan
22 days ago
Isn't that a bit high for a single project loss?
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Zoila
28 days ago
I think it's more about expected value calculations.
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Willard
1 month ago
Wait, 45% chance of losing that much? Seems risky!
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Celestina
1 month ago
Totally agree, that's classic probability analysis!
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Mozell
1 month ago
Sounds like they're using risk assessment techniques.
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Viva
2 months ago
Haha, the Product Owner must be a professional gambler!
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Domitila
2 months ago
This is clearly a sensitivity analysis.
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Annmarie
2 months ago
Hmm, I'd say it's a Monte Carlo simulation.
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Lyndia
2 months ago
Sounds like risk assessment to me.
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Ranee
2 months ago
Probability analysis, definitely.
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Bette
2 months ago
This sounds like it could be decision tree analysis, but I need to double-check how that fits into cost-benefit analysis.
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Tonette
3 months ago
I feel like the Product Owner is using some kind of probabilistic modeling, but I can't recall the exact term.
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Skye
3 months ago
I remember practicing a similar question where we had to calculate expected losses. Is this about expected monetary value?
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Alton
4 months ago
I think this might be related to risk assessment techniques, but I'm not entirely sure if it's specifically cost-benefit analysis.
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Deangelo
4 months ago
Yeah, I agree with Emily. Quantifying the probability and potential loss seems like a key part of a rigorous cost-benefit analysis, especially for a high-risk project factor like a regulatory change.
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Benedict
4 months ago
Based on the details provided, I'd say the Product Owner is using a Monte Carlo simulation or similar probabilistic modeling approach to assess the potential financial impact. That seems like a common cost-benefit analysis technique.
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Alba
4 months ago
Wait, I'm a bit confused. Is this specifically about risk analysis techniques, or just general cost-benefit analysis? I want to make sure I understand the focus of the question.
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Candida
4 months ago
Okay, I think the key here is the 45% probability of a $800,000 loss. That's the kind of data point I'd expect to see in a cost-benefit analysis.
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Rosalind
4 months ago
Hmm, this sounds like a risk analysis question. The Product Owner is trying to quantify the potential financial impact of a regulatory change.
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